Service quality,perceived value,corporate image,and customer loyalty in the context of varying levels of switching costs

The current study moves beyond customer‐perceived value and corporate image and demonstrates that switching costs are important factors in influencing a customer's decision to stay with a service provider. This work finds support for a contingency model involving customer‐perceived value, corporate image, and switching costs. The results indicate that the impacts of customer‐perceived value and corporate image on customer loyalty decrease under conditions of high switching costs. Implications of the results are discussed. © 2010 Wiley Periodicals, Inc.     

Relationships and impacts of service quality,perceived value,customer satisfaction,and image: an empirical study

In today's world of intense competition, satisfying customers is only the base line and may not be sufficient for survival. Management should focus on gaining customer loyalty by enhancing customer perceptions of service quality and increasing as perceived by the consumer value. Although previous studies have addressed the importance of service quality, satisfaction, perceived value, and image, the precise nature of the relationships that exist between these constructs and the understanding of their effect on customer behaviour still remains a key issue. This empirical study seeks to understand the relationships that exist between service quality and perceived value and how they impact customer satisfaction, corporate image, and behavioural intentions. The proposed model indicates that delivering high quality service and creating superior customer value can result in achieve high customer satisfaction, thus effecting the firm's corporate image, and ultimately leading to consumer retention.     

Retail service quality,corporate image and behavioural intentions: the mediating effects of customer satisfaction

This study investigates the relationships between service quality, corporate image, satisfaction and behavioural intentions. A structural equation modelling (SEM) approach is applied to test the proposed conceptual framework, using data collected from 404 supermarket customers in China. The structural model suggests that customer satisfaction fully mediates the impact of retail service quality on behavioural intentions (e.g. intention to recommend and repurchase). The results also indicate that retail service quality significantly influences customer perceptions of corporate image. The relationship between corporate image and behavioural intentions is fully mediated by satisfaction.     

Customer-perceived value and loyalty: how do key service quality dimensions matter in the context of B2C e-commerce?

This paper develops a research model to examine the effect of e-service quality dimensions on customer-perceived value and customer loyalty. Based on a survey of 235 online customers, we identify five key e-service quality dimensions: care, reliability, products portfolio, ease of use, and security. Our empirical results show that all the five dimensions have significant and positive impacts on customer-perceived value which, in turn, increases customer loyalty. We further examine the mediating role of customer-perceived value in the relationship between each e-service quality and customer loyalty. The results suggest that customer-perceived value plays a partially mediating role in the effect of ease of use, care, product portfolio, and reliability on customer loyalty, and a fully mediating role in the relationship between security and customer loyalty. Managers may be in a position to benefit by employing the model presented in this study in an effort to improve service performance and, hence, retain customers.     

Measuring the antecedents of e-loyalty and the effect of switching costs on website

This paper deals with the process by which electronic customer loyalty (e-loyalty) is formed. The twofold aim is to analyse e-loyalty, describing its development in terms of how it is influenced by several determinants and to study potential barriers to switching which significantly affect the repeat purchase decision. In particular, an integrating theoretical framework is proposed to determine the e-loyalty dependency of electronic service quality and perceived value, and how this last relationship can be moderated by switching costs. Results offer evidence for the important role of customer's perceptions of e-service quality and value in e-loyalty. Proposals are made of how companies that are online can use this knowledge to build marketing strategies.     

Analyzing Customers' Switching Intentions in the Telecom Sector

ABSTRACT

Mobile Number Portability (MNP) has not only affected customers' behavioral patterns, but also increased competition among telecom operators. Against this backdrop, the study examines the relationship between customers' switching intentions and attitude towards MNP, customer loyalty, and switching barriers. It also investigates the impact of these intentions on actual switching or staying behavior of customers. Data were collected from a sample of 260 telecom customers comprising university students. Findings reveal that customers' switching intentions would largely depend upon switching barriers perceived by them. Switching intentions predict both actual staying and switching behavior. Our understanding of switching barriers is limited to those involved in switching from a current service provider to a new service provider. Future research can examine the barriers associated with returning to the original provider and the effect on the decision to leave in the first place, especially in the case of contractual agreements such as BSNL. The present study will help practitioners and telecom service providers in understanding the factors affecting customers' switching intentions to prevent switching.     

How quality, value, image, and satisfaction create loyalty at a Chinese telecom

This study proposes and tests an integrative model to examine the relations among service quality, value, image, satisfaction, and loyalty in China. Analysis of survey data from 118 customers of a Chinese mobile communications company reveals that service quality directly influences both perceived value and image perceptions, that value and image influence satisfaction, that corporate image influences value, and that both customer satisfaction and value are significant determinants of loyalty. Thus, value has both a direct and indirect (through satisfaction) impact on customer loyalty. Other variables mediate the impact of both service quality and corporate image on customer loyalty.     

Service value and switching barriers: a personal values perspective

This research aims to investigate how customers, the key actors in a service relationship, perceive service value and switching barriers. The study is framed along the means-end-chain theory of personal values and theory of customer resources in the service-dominant logic. Hypotheses about the impact of personal values on customer value, switching barriers and customer loyalty were tested using structural equation modeling of survey data obtained from the health care and retail banking sectors in Vietnam. The results show that in both sectors, personal values have a significant impact on perceived process and outcome value as well as on perceived economic and relational switching barriers. Economic barriers were found to affect loyalty in the banking sector, in the same way that relational barriers affect loyalty in the health-care sector only. Loyalty in both sectors is influenced by process but not by outcome value. The implications of these findings are discussed.     

Customers Perception of Service Quality in Higher Education

ABSTRACT

Intense competition in the higher education sector in New Zealand has forced a number of educational institutions to examine the need for assessments of customer-perceived service quality for differentiation purposes. Research studies in this area have mainly focused on either the administrators or the faculty's perspectives and have overlooked the other customers, namely students and employers. The instruments developed based on the Importance-Performance paradigm were administered to 280 New Zealand employers and 1,000 business graduates. The results indicate that employers and students have perceptual problems with the level of service provided by tertiary institutions. Implications and suggestions for future research are provided.     

Customer satisfaction,corporate image,and service quality in professional services

This study explores the impact of corporate image and service quality on customer satisfaction in the professional service industries. Data were collected on audit firms, sending a questionnaire to financial executives of leading Italian companies. The results show that the most important variable explaining customer satisfaction was the apparent effectiveness of the audit firm. In relation to service quality, managers' satisfaction was primarily driven by their perception of audit firm's work as a useful value-adding service. The length of audit firm–auditee relation, the location of the auditor's office, and the financial executive's personal characteristics were also significant drivers of customer satisfaction.     

Deconstructing B2B,co-creation and service deployment in East Asia: evidence from Taiwan and PRC manufacturers

Academia and governments have been advocating service deployment as an upgrading strategy for manufacturers for some time now. Existing research findings show that customer co-creation may be a key to service strategy success. However, prior studies have focused on relatively resource-rich and advanced Western contexts. This research examined co-creation’s role on service deployment performance and the conditions that encourage co-creation in the manufacturing business-to-business context of Taiwan and the PRC. The results indicate that co-creation fully mediates the relationship between a firm’s service deployment and customer-perceived value. Additionally, a firm’s product-service significance, capability specificity, supply chain mode and customer-perceived environmental turbulence may significantly influence co-creation.     

A cross-cultural study of switching barriers and propensity to stay with service providers

This study examines the important and often underestimated role that switching barriers play in the propensity to stay with service providers. Three service types (with different structural characteristics) were studied across two diverse cultures—Australia (Western, individualistic culture) and Thailand (Eastern, collectivist culture). Six potential switching barriers are examined: search costs; loss of social bonds; setup costs; functional risk; attractiveness of alternatives; and loss of special treatment benefits. The results from a series of multiple regression analyses show switching costs capture a substantial amount of the explained variance in the dependent variable, propensity to stay with a focal service provider. Furthermore we demonstrate using interaction terms that these switching costs appear to be universal across west-east cultures. However, significant variations were found across industries. Next, using a hierarchical regression procedure, we add a satisfaction variable into each model. The incremental gain in R² is significant in each industry. Nonetheless the significant impact of switching barriers gives rise to the identification of a new type of service loyalty, which we term “captive loyalty.”     

A Meta-Analysis of Relationships Linking Employee Satisfaction to Customer Responses

The authors report a meta-analysis of relationships linking employee job satisfaction to customer satisfaction and perceived service quality in studies that correlate employee data with customer data. Overall, both relationships are positive and statistically and substantively significant. Moderator analyses show that service industry characteristics (relationship versus encounter, personal versus non-personal) and methodological characteristics (aggregated versus individual level of analysis, concurrent versus predictive survey) moderate these relationships. Estimation of a path analytic model using the aggregated data shows that customer-perceived service quality completely mediates the relationship between employee job satisfaction and customer satisfaction. Implications for research and practice are discussed.     

Customer Participation Behavior in High- Versus Low-Contact Services: The Multiple Roles of Customer Trust

ABSTRACT

In light of the changing roles of customers from service co-producer to value co-creator, the customer participation literature has conceptualized two types of participation behavior: co-production and value co-creation. However, there is a dearth of knowledge concerning both the antecedents of customer co-creation behavior and the outcomes of such behavior in relation to customer-perceived value and loyalty. Anchored in the trust-commitment theory, the present research (a) examines the effect of how a customer's trust in the service personnel could affect his/her cooperative behavior over the service design and delivery processes; and (b) investigates how the potential impact of a customer's trust in service personnel on his/her co-design and co-delivery behavior could be made contingent upon the customer's trust in the service brand and the types of high- versus low-customer-contact service contexts. Filling the aforementioned research gaps, the present research contributes to advance our knowledge of the roles played by trust at different levels of analysis in facilitating customer participation behavior and improving our appreciation of the customer contact service contexts when designing the service organization for maximizing service value and sustaining brand loyalty over time.     

Understanding the user satisfaction and loyalty of customer service chatbots

The artificial intelligence (AI) chatbot is emerging as a significant corporate customer-facing application, potentially increasin customer service efficiency while reducing costs. However, little work has sought to assess the quality of service they provide consumers. This study applies the e-service quality by incorporating conversational AI quality to predict users' satisfaction and loyalty to customer service chatbots. The proposed model was empirically evaluated using survey data collected from 219 users responding about their perceptions of customer service chatbots. The findings indicate that AI chatbot service recovery quality and AI chatbot conversational quality significantly influence user satisfaction. On the other hand, core AI chatbot service quality and satisfaction significantly influenced chatbot user loyalty. This study contributes to researchers and practitioners by proposing and evaluating a more comprehensive chatbot e-service quality that combines both fundamental (core service and service recovery qualities) and human-like (conversational quality) aspects of e-service. The results are of value in devising future AI chatbot services and related strategies.     

Six Sigma and Service Quality: Christian Grönroos Revisited

Grönroos' 1984 deconstruction of service quality led him to conclude that its principal components were technical quality, functional quality, and corporate image. A later model, developed by Parasuraman, Berry and Zeithaml (1985), is more widely known however, and represents the point of departure for much of marketing's extant research concerning the evaluation of services. Despite similarities between the two it is the latter which has captured both public and academic imagination and which, in the process, has determined our preconceptions regarding what service quality might be. Due in part to misinterpretation and misunderstanding, the PBZ model has helped shape a view of service quality that now over-emphasises the functional and under-represents the technical and, to a degree, has encouraged within the marketing fraternity a presumption that 'service quantity' stands proxy for 'service quality'. This paper suggests that perceptions and expectations have now taken over from reality and needs, and explains how Six Sigma service quality might be the spur that could cause us to re-address the structure and meaning of this crucial property.     

The Garden of the Self-Service Store

Abstract

As a result of the increased competition between self-service chains, retail managers to an increasing degree try to strengthen store identity and customer loyalty. Based on a broad range of consumer choice and environmental psychology theories, this article discusses a number of reasons why the fruit and vegetable department can be one of the keys to differentiating retail chains and creating positive store image. The article describes the results of two empirical studies (a focus group and a survey) which explore customer-perceived quality dimensions of the fruit and vegetable department and the extent to which these dimensions influence customer attitudes towards the fruit and vegetable department and store image in general.     

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACT

As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.     

基于服务价值的快递企业竞争力实证研究

通过文献研究总结归纳出服务价值的四个维度:服务质量、感知利失、企业形象、情感价值,构建了基于服务价值的快递企业竞争力概念模型,探讨了服务价值的四个维度与顾客满意和企业竞争力的关系,并运用结构方程对模型的假设关系进行了验证。结果表明,服务价值的四个维度均对顾客满意有显著影响进而对企业竞争力产生影响。     

The Relative Effects of Relationship Quality and Exchange Satisfaction on Customer Loyalty

ABSTRACT

This paper addresses two key questions on how supplier firms can better manage industrial buyers to create higher loyalty. The first involves whether to focus on relationship quality or exchange satisfaction. This dual route model towards enhancing loyalty in essence is concerned with comparing the relative strengths of the effect from relationship quality to loyalty and from exchange satisfaction to loyalty. The second point of interest pertains to whether the effects from relationship quality and exchange satisfaction to loyalty are moderated by environmental conditions such as switching barriers and viable alternatives. Using data on business customers' ratings of a major information technology provider, we find that the effect of exchange satisfaction on loyalty is significantly greater than the effect of relationship quality on loyalty. We also find that the impact of exchange satisfaction on loyalty is less sensitive and more stable across different levels of switching barriers and viable alternatives. Conversely, the effect of relationship quality on loyalty is more pronounced to such moderating variables in that the effect of relationship quality on loyalty was greater when switching barriers were low and many viable alternatives existed. Implications for marketing theory and practice are discussed.